global nps & enps benchmark report 2018 - cxo€¦ · the process of owning a tesla far better...

GLOBAL NPS & ENPS BENCHMARK REPORT 2018Profiles of 20 top performing companies

01

CONTENTS02 28 56

12 32 58

18 38 62

50

74

78

24 68

16 36 60

22 42 66

52 72

Foreword Apple Sendgrid

Tesla Netflix Shopify

Starbucks Southwest Zillow

Alm Brand

LG

Intuit

Airbnb Hasbro

Costco Samsung Costco

Usaa Eurofins Airflac

Hubspot Netflix

02Foreword

RELATIONWISE NPS & ENPS REPORT 2018

A COMPANY MUST BE ENGAGED

WITH CUSTOMERS AROUND THINGS

THAT ARE IMPORTANT TO THE

CUSTOMERS. I REFER TO THOSE

THINGS AS MOMENTS OF TRUTH,

AND COMPANIES HAVE TO SPEND

SOME TIME FINDING OUT WHAT

THEIR MOMENTS OF TRUTH ARE BY

ASKING CUSTOMERS.

03

NPSREPORT&ENPS

If you believed everything you heard, saw and read, you’d think that every company in the world was focused on building an amazing customer experi-ence. These businesses do

everything they think will lead to loyal, happy customers—eve-

rything, that is, except actually engage with them in a meaning-

ful way. Too often, companies ask their customers to provide specific input, such as to ‘’ like’’ them on Facebook, for example, or fill out a survey - when they should be letting customers decide for themselves what they want to say and do.

‘’A company must be engaged with customers around things that are important to the cus-

tomers’’, says Denis Pombriant, managing principal at CRM consultancy Beagle Research Group and author of a customer engagement book, ‘’Solve for the Customer’’. ’’I refer to those things as moments of truth, and

companies have to spend some time finding out what their moments of truth are by asking customers.’’ 1

Most business leaders would agree that a key to a company’s success is an ongoing stream

of happy customers, willing to pay for the company’s goods and services. And then getting

them to come back … again and again. But let’s talk a bit about the people who actually face the customer- the employees. These people can make the difference between your company’s suc-

cess and its total failure. In a re-

cent study, Gallup reported that employees who are engaged are more likely to improve customer relationships, with a resulting 20 percent increase in sales.2

But how many companies actually listen to the voice of the employee? Whilst a number of brands are tuned in to customer

feedback- and quite rightly so- one often overlooked aspect of a customer experience strategy is that of the employee. It is frequently pointed out that con-

tented employees are imperative

for successful customer experi-ence management, and there

is a lot of truth in this; happier employees tend to be more mo-

tivated and focused, and more

determined to see the company succeed. Keeping them en-

gaged, therefore, should be a top priority for any organization that is serious about its future

success.3 Temkin Group’s 2016 Employee Engagement Bench-

mark Study reports that com-

panies that excel in customer experience have one-and-a-half times as many engaged employ-

ees as do customer-experience “laggards”.Another aspect of creating loyal customers is being there even

Most business

leaders would

agree that a key

to a company’s

success is an on-

going stream of

happy customers.

04Foreword


when you are not obliged to. Let’s say you order a PlaySta-

tion on Amazon, as a Christmas

present for your son. It was delivered to your doorstep; your neighbor signed for it, and left it on your front porch. But then it mysteriously vanished. Now you have to fork out a few hundred bucks more and reorder the same PlayStation, right? Well, when this happened to an Ama-

zon customer a few years ago, Amazon sent him a new PlaySta-

tion for free- he didn’t even have to pay for shipping. The best part? They got it to him in time for Christmas.

Now, imagine you were that Amazon customer. Wouldn’t you tell all your friends and family how awesome Amazon is, and how it saved your Christmas? Yup. You might even end up a loyal Amazon customer for life. Amazon gets that, which is why it goes the extra mile for customers (even when it’s not strictly necessary). I came across a Forbes interview the other day, and found in these two sentences spoken by Jeff Bezos a perfect summary of why they are so customer-obsessed:

Adding more value to their customers is the simple goal

IT USED TO BE THAT IF YOU MADE

A CUSTOMER HAPPY, THEY WOULD

TELL FIVE FRIENDS. NOW, WITH THE

MEGAPHONE OF THE INTERNET,

WHETHER ONLINE CUSTOMER RE-

VIEWS OR SOCIAL MEDIA, THEY CAN

TELL 5,000 FRIENDS.

05

06Foreword


07

that is the driving force behind

Amazon’s sense of urgency and willingness to experiment. According to Bezos, Amazon’s customer obsession means

the company is always on the lookout for ways to improve the service they give them.4

This report will walk you through some real-life examples of companies which successfully implement the notion of the Net Promoter Score and the Em-

ployee Net Promoter Score into their corporate strategies and use the two as tools for improv-

ing customer service and boost-

ing returns. All these companies can show some great examples of successful integration of cus-tomer and employee happiness into their firm’s business strategy and how this integration leads to overall corporate wellbeing in the long run. However, we

must note that since informa-

tion concerning NPS and eNPS scores is limited, because these concepts are quite new, for some firms, with excellent NPS scores, there was no data available on their eNPS and vice versa. Nevertheless, we all learn better from examples. And what better way to learn how to use the NPS and eNPS concepts for your own company than by walking in the shoes of the world’s very best companies?

Victoria Dinkova,Author and project manager,

Relationwise

Jesper Krogh Jorgensen,Co-editor and CEO at CXO

CXO.AS (e)N

PS

1 http://www.baselinemag.com/crm/its-all-about-the-customer-at-hilton.html

2 https://www.forbes.com/sites/shephyken/2017/05/27/how-happy-employees-make-happy- customers/#3973550e5c35

3 https://engagecustomer.com/customer-experience-strategy-employee-engagement-imperative-usaa-case- study/

4 https://www.inc.com/tommy-mello/this-5000-friends-strategy-made-amazon-more-successful-than-any-company-in-world.html

Find out more about us at www.relationwise.com

Google cares about its

NPS and eNPS scores, so

why shouldn’t you?

12Tesla


TESLA

13

Tesla currently holds a satis-faction rating of 96, outscoring every other car manufactur-

ing company in Net Promoter Score® ratings. Tesla has also claimed the top spot in the 2016 Consumer Reports’ annual own-er satisfaction survey, where 91 percent of Tesla owners stated that they would buy another Tesla vehicle in the future.

As a matter of fact, Tesla doesn’t have a huge marketing budget, unlike car manufactur-ers such as Ford and General Motors. Instead, Tesla relies on its brand advocates and word-of-mouth marketing to sell its cars. Hundreds of Tesla fans line up outside dealerships before the

cars are even offi cially unveiled- they even have to wait a few years before they can get their

dream car. These incredible pre-order numbers grab Tesla even more attention. So what does Tesla do to drive its huge success and inspire such crazy high levels of customer loyalty? These are some of the reasons

that retently.com 5 found:

1. Establishes an emotional connection with the customer

Tesla fans are crazy advocates for a reason. They attach a deep emotional connection to the brand. One of the easiest ways for a company to make this hap-pen is to stand for something important. In fact, a study by marketing research firm CEB published by the Harvard Busi-ness Review, found that loyalty to brands is hard to achieve

without one key element- shared values. People become loyal when they share the visions and beliefs the company represents. Tesla passionately promotes its vision that the adoption of elec-tric vehicles will one day solve our planet’s energy problems. As a result, people feel good

about driving a Tesla. They don’t need to buy gas, AND they’re helping the environ-ment. This sort of publicity is earned, not bought.

2. Delivers one of the best customer experiences in the auto-industry

Tesla realized something that gave them a huge competi-tive advantage in the world of customer experience: make the process of owning a Tesla far better than that of owning any other car. As Tesla’s VP of Sales, Cristiano Carlutti, puts it:

“In the other companies, cus-tomers are customers, basically. They pay, they get a product or a service. In the case of Tesla, the customers are partners.”

The process of owning a car has many touch points, from choosing the car to providing regular service and mainte-nance to keep it running. And while many automotive com-panies provide great products, Tesla is going above and beyond in order to create a complete user experience. The whole buy-ing and maintenance process is very personal and in some cases unique to the car market: after

Industry: Automotive/

Energy storage

Latest NPS: 96

5 https://www.retently.com/blog/tesla-nps/

14Tesla


IN THE OTHER COMPANIES, CUSTOMERS

ARE CUSTOMERS, BASICALLY.

THEY PAY, THEY GET A PRODUCT OR A

SERVICE. IN THE CASE OF TESLA, THE

CUSTOMERS ARE PARTNERS.

15

you place your order, you have one week to modify it before the Tesla factory begins implement-ing your desired settings. The

car will then be delivered to you or you can pick it up from the factory and at the same time

get a free tour of the works. If there is an issue related to its software, engineers can often update the car remotely. So, they can work on it during the night and have it ready to go the

next morning. These are just some of the ways Tesla makes its customers feel special. Tesla is doing more than simply of-fering a great product, it is also changing the industry’s percep-

tion of customer experience.

3. Takes customer feedback seriously

I personally have never owned a Tesla, but I did once test drive the Tesla Model S. The next day, I received an email from the company asking if I would complete their cus-

tomer satisfaction survey. I took some time to write it because I knew someone at the other end would actually be interested in reading what I had to say.

Example of Tesla customer satisfaction survey Tesla has been known to respond to cus-

tomer feedback and has actually implemented some of its cus-

tomers’ ideas. A great example of this occurred when two Tesla drivers submitted an open letter to Musk via a full-page ad in a Palo Alto newspaper. They asked Tesla to make a few changes to its Model S. In re-

sponse, Musk tweeted a photo of the open letter saying that Tesla would indeed implement some of the suggested changes.

Despite all this, as many read-

ers will know, Tesla has not yet earned any profits. This would usually mean that the high NPS score the company manages to achieve has nothing to do

with earning actual profits. In Tesla’s case, this statement is false for several reasons. Firstly, Tesla entered the automotive industry (an industry with one of the highest entry barriers in

the world!) with the intention of disrupting it and bringing about fundamental change. This makes it much more difficult for Tesla to create profits, as the company must invest a huge amount while just entering the market. Additionally, the company is facing production problems. They have not (yet)

reached the critical mass neces-

sary for the economics of scale to kick in and allow cars to be manufactured cost- effectively- this is a matter of time.

16Costco


COSTCO

17

Costco Wholesale Corpora-tion is the largest American membership-only warehouse club. The company provides a wide selection of merchan-dise, and as of 2015, was the second largest retailer in the world after Walmart. Costco is known for off ering constantly changing selections of moder-ately priced, high-quality luxury goods among its inexpensive, regularly stocked bulk goods. As of 2016, the company was the world’s No. 1 retailer of choice and prime beef, organic foods, rotisserie chicken, and wine.

Costco is a real-life example of how great customer rela-tionships generate economic benefits. The company boasts an NPS of 79 percent and has grown to 90 million members despite spending frugally on advertising and marketing. The interesting thing is that Costco

doesn’t actually make its money selling things. It charges its members an annual fee for the privilege of shopping at its stores, and these fees represent the bulk of Costco’s operating profit. In 2014, Costco generat-ed an operating profit of $3.22 billion. Of this amount, $2.43 billion came from membership fees of loyal, satisfied customers.

This leads to an extremely stable base of members, with retention rates in excess of 85 percent. It’s no surprise, then, that Costco’s profitability has been so consistent over the

years.

While many retailers spend

huge sums of money on market-ing, attempting to drive cus-tomers to their stores, Costco

spends essentially nothing. The company’s success relies almost entirely on word of mouth. For example, regular grocery stores would send out a weekly flyer with an amazing sale splashed across the front page- something like “$1 per pound of blueber-ries!”- to entice shoppers to visit the store. Costco, however, doesn’t send out weekly flyers at all. Instead, they use word-of-mouth advertising and are

able to simultaneously save money on marketing and keep the same low-cost-seekers week after week.

So what is behind the compa-ny’s successful business struc-ture? From the very beginning, Costco’s managers have looked at things from the clients’ point of view, developing a culture that ensures a good experience by off ering such things as a generous return policy on top-quality products, passing on to customers the savings made by

purchasing these products at wholesale, spurning the use of misleading advertising, and of-fering employees decent wages and attractive benefits.6

The interesting thing

is that Costco doesn’t

actually make its

moneyselling things. It

charges its members

an annual fee for the

privilege of shopping

at its stores.

Industry: Consumer

Brands/Grocery

Latest NPS: 79

6 http://mitsloan.mit.edu/newsroom/articles/how-costcos-obsession-with-culture-drove-success/

18Starbucks


STARBUCKS

19

Starbucks is a dynamic organi-zation that has attained global sig-

nificance. The company has stores all over the globe and a big part of Starbuck’s success can be attrib-

uted to its extraordinary customer and employee relationships. As a major player in the gourmet coffee industry, Starbucks has built its business around a strong corpo-

rate culture in which the bottom-line means a lot more than just profit. This view of doing business has guided the company’s actions in all aspects of its day-to-day operations- from the acquisition of beans, to selling drinks in the stores. The company was founded in 1971 and, as of 2018, operates

in more than 28,000 locations. Moreover, it currently employs 238,000 people and continues to grow at a fast pace.

Throughout the years, the

company has been able to expand successfully and to continually grow demand for its products. The success has largely come from the way the company treats its employees.

‘Our employees, who we call partners, are at the heart of the Starbucks Experience. We believe in treating our partners with respect and dignity. Starbucks is committed to doing business

responsibly and conducting our-selves in ways that earn the trust and respect of our customers, partners and neighbors.’

Starbuck’s commitment to hav-

ing a satisfied workforce has trans-lated into increased profits and high customer loyalty. Employees are given the ability to make decisions on their own, without strictly depending on the manage-

ment team. This open -system of communication enables a more relaxed and supportive working atmosphere, which is appreciated both employees and customers. All members of staff, whether full- or part-time, are referred to not as “employees,” but rather as “partners.”

While most quick-serve restau-

rants have a staff turnover rate of between 150 and 400 percent, Starbucks is at an astounding 65 percent, according to QSR magazine.7 As a matter of fact, 87 percent of job applicants are also customers, so a bad candidate

experience can directly impact your bottom line. This is where Starbucks shines. The company’s Glassdoor reviews show that applicants typically have a posi-tive interview experience with the emphasis on personality.

Starbucks have

built their business

around a strong

corporate culture

in which the

bottom-line

means a lot more

than just profit.

Industry: Food and

beverage/Coffee retailing

Latest NPS: 77

20Starbucks


“OUR EMPLOYEES, WHO WE CALL PART-

NERS, ARE AT THE HEART OF THE STAR-

BUCKS EXPERIENCE. WE BELIEVE IN TREAT-

ING OUR PARTNERS WITH RESPECT AND

DIGNITY. STARBUCKS IS COMMITTED TO

DOING BUSINESS RESPONSIBLY AND CON-

DUCTING OURSELVES IN WAYS THAT EARN

THE TRUST AND RESPECT OF OUR CUSTOM-

ERS, PARTNERS AND NEIGHBORS.”

21

Even the official career website provides interview tips and states, “Be yourself. We want to get to know you.” Starbucks is con-

stantly looking for new perks

to offer employees- like pay in-

creases, tuition reimbursement,

health coverage and more.8

When employees speak, Starbucks listens. When custom-

ers speak, employees listen… And, at the end of the day, this

way of doing business translates into value creation and higher returns for shareholders. If we compare the productivity of Starbucks’ employees to that of their industry peers, we can see

that for the last five years Star-bucks has achieved higher rev-

enue levels per employee, which corresponds to the movement of the company’s share price.9

7 https://www.qsrmagazine.com/outside-insights/escaping-burn-and-churn-employee-treadmill

8 https://finance.yahoo.com/news/starbucks-productivity-revenue-per-employee-003248140.html9 http://markets.businessinsider.com/stocks/sbux-stock

22Starbucks


USAA

23

USAA is an insurance hold-ing company that was started by military veterans unable to get insurance from traditional carri-ers. They have been one of the

top-performing companies in the NPS rankings for the past decade.

They were able to achieve such huge success essentially through a strategy of customer centricity.

What does customer -centricity look like at USAA and how do they achieve it? It starts with a very active program to inspire em-pathy on the part of its employees, in particular, towards the most stressed-out subset of its custom-

ers- called “members,” in USAA lingo.10 As USAA’s customer base is made up, in large part,

of military, retired military, and their families, the most stressed are likely to be currently -deployed servicemen and servicewomen, and their families back home.

“Customer experience is our main priority; the service we provide to our members is the foundation USAA was built on,” the brand says. “We are focused on knowing our members and fully understanding their indi-vidual needs, so we can eff ectively provide appropriate and custom-ized solutions to protect and enhance their financial security... Our employees are personally committed to delivering excellent service and great guidance. That

exceptional service builds loyalty and trust over the long term”.

Their three business groups: in-surance, banking and credit cards

all scored in the top 10 in a recent NPS Rankings. The company is holistically focused on the needs of the customer- both the current

needs and anticipating the future needs. They drive innovation

via their Innovation Community

for Enterprise, which encour-ages employees to submit ideas to improve the company. Last year, 94 percent of the employees submitted over 10,000 ideas and

a record-breaking 1,206 initiatives were launched. USAA revenue for 2016 was $27 billion, a 42 percent increase over the past five years.11

As the company

puts it, its mission

is “to create a

more connected

world”.

Industry: Financial

Services/Banking

Latest NPS: 75

10 https://www.forbes.com/sites/micahsolomon/2015/08/13/crushing-it-via-customer-centricity-not-geckos- and-fl ying-pigs-the-usaa-model/#5ef9eb547a8f11 https://www.bookingbug.com/blog/3-companies-achieving-success-using-the-concept-of-net-promoter- score/

24Airbnb


AIRBNB

25

What initially began as two roommates unable to come up with the funds for their rent, unraveled into something much greater than they could have ever imagined. Founded in August of

2008 in San Francisco, California, Airbnb is home to 5,000 employ-ees across the world with more than 25 million users globally. With 190 countries, and 34,000 cities under its belt, Airbnb is proud on being a renowned and trusted community marketplace where users can book unique ac-commodation around the world.12

Airbnb became profitable in the second half of 2016. The company is on pace to sustain profitability by blowing away its own internal

forecasts and bringing in a $93 million profit on $2.6 billion in revenue, in 2017.13 Before 2016, Airbnb wasn’t yet profitable main-ly due to the cost of their aggres-sive strategies involving overseas expansion and customer acqui-sition. The company incurred a significant operating loss at $150 million in 2015. As Airbnb expanded into more countries and increased their mind-share to

make it a mainstay in temporary accommodation for either leisure or business trips- initially, it meant making a loss.14 But in the long run, it obviously paid off since its valuation as of 2018 is a huge $38 billion.15

In Glassdoor’s well-regarded ranking of the best workplaces in 2016, based on anonymous employee reviews, Airbnb was rated #1. Airbnb’s momentum is the result of a cleverly thought-out mission and strategy, of which the employees and the workplace are the starting point. Airbnb has suc-ceeded in developing a culture of belonging where people naturally thrive, grow and produce. For Airbnb, building a welcoming and inclusive culture is not something that is isolated to a single project or program. Facilitating belonging is part of the entire employee jour-ney, incorporated in everything from recruiting and onboarding

Customer experi-

ence is our main

priority; the service

we provide to our

members is the

foundation USAA

was built.

Industry: Lodging/

Tourism

Latest NPS: 74

Airbnb has suc-

ceeded in devel-

oping a culture of

belonging where

people naturally

thrive, grow and

produce.

26Airbnb


“YOU DON’T SEE THE MISSION AND VALUES

ON THE WALL. INSTEAD, YOU FEEL IT

WHEN YOU WALK THROUGH THE DOOR AND

YOU SEE IT IN THE WAY THAT PEOPLE

BEHAVE WITH ONE ANOTHER, AND WITH

ANYONE WHO COMES INTO CONTACT WITH

US. BEING A HOST IS ONE OF OUR MOST IM-

PORTANT VALUES, AND IT IS HOW WE

BEHAVE BOTH WITH ONE ANOTHER, AND

EVERYONE ELSE.”

27

to citizenship, physical facilities and food.16 Employees are also informed about employee birth-

days and anniversaries through

the intranet. Moreover, every

employee can access his or her own webpage, which is meant to facilitate internal networking. The company makes an effort to bring people together across geogra-

phies, whether online or through face-to-face meetings.

Beyond welcoming people, the Airbnb culture is driven by an inspiring mission that extends ‘beyond us’ and they have suc-

ceeded in implementing it. As the company puts it, its mission is “to

create a more connected world”.“You don’t see the mission and

values on the wall. Instead, you feel it when you walk through the door and you see it in the way that people behave with one another, and with anyone who comes into contact with us. Being a host is one of our most important values, and it is how we behave both with one another, and everyone else.”

Mark Levy, Head of Emploee Experience for Airbnb

12 https://smbp.uwaterloo.ca/2015/02/airbnb-is-more-than-just-a-company-its-a-family/

13 https://www.businessinsider.com/airbnb-profit-revenue-2018-214 https://www.quora.com/How-profitable-if-at-all-is-Airbnb15 https://www.forbes.com/sites/greatspeculations/2018/05/11/as-a-rare-profitable-unicorn-airbnb-appears- to-be-worth-at-least-38-billion/#469771b4274116 https://www.linkedin.com/pulse/how-airbnb-became-worlds-best-place-work-roar-v-bovim/

28Apple


APPLE

29

Apple is one of the most well-known retailers of innova-

tive technology, from personal computers to handheld devices such as tablets and mobiles. It is the third largest maker of PCs in the US, and since 2001 has had a much higher focus upon retail and customers than its competi-tors. The customer relationship is now an essential part of Apple’s growth strategy and is almost as much of a brand feature as the

iPad or iPhone.17

The company has a legendary focus on the customer experience. Every customer touchpoint (prod-

ucts, the website, ads, app store, and retail store) yields a consistent Apple experience. Over the last

10 years, Apple has aggressively expanded the areas where the Ap-

ple experience is part of daily life. By encouraging app builders but rigidly enforcing standards, Apple ensures that the universe of Apple-mediated behaviors continually expands. By innovating product form factor and function from

computing in either your pocket or on your wrist, to paying for all your purchases, to opening your

hotel room, to controlling all of your home electronics, to remind-

ing you of your calorie count or parking spot… all of these experi-ences are connected, integrated,

and packaged in a singular acces-sible ecosystem of complementary products. Additionally, Apple has focused on innovation beyond the

core by creating the infrastruc-

ture to enable this ecosystem in a secure and seamless fashion (think Apple Pay secure payments or biometric facial recognition on the iPhone X). The most tangible example, of course, is in Apple stores. Apple overturned conven-

tional retailing wisdom when it created its stores, putting experi-ence before “selling.” It’s contin-

ued building on that success by further removing “store” from its retail branding because it sees its stores as so much more.18

Another part of Apple’s cus-tomer engagement strategy is

that the company always tries to empower customers who “think differently”—seeking to inspire customers to do things in unique and creative ways. However, as its products have become more ubiq-

uitous, Apple has had to work harder to maintain that focus.

For students, artists, and entre-

preneurs, Apple has sought to build community and bring more customers into the fold. Currently

The company has a

legendary focus on

the customer expe-

rience. Every cus-

tomer touchpoint

(products, the web-

site, ads, app store,

and retail store)

yields a consistent

Apple experience.

Industry: Consumer

Electronics

Latest NPS: 72

17 https://www.expertmarket.co.uk/crm-systems/apple-crm-case-study

18 https://www.forbes.com/sites/christinemoorman/2018/01/12/why-apple-is-still-a-great-marketer-and-what- you-can-learn/#5f843a0215bd

30Apple


Plaza”- an area which is open 24-hours a day with free Wi-Fi, public seating, and weekend concerts. Another feature is

“The Forum”—an area sur-rounded by a 6K Video Wall and “Today at Apple,” a pro-

gram that brings talented art-ists, photographers, musicians, and other visionaries together

to further ideate on their pas-

sions. According to Angela Ahrendts, VP of Retail, “We are renewing our focus on liberal arts—humanizing technology through experiences that edu-

cate and entertain visitors and

empower entrepreneurs.”

Another part of Ap-

ple’s customer en-

gagement strategy

is that the company

always tries to em-

power customers

who “think differ-

ently”—seeking

to inspire custom-

ers to do things in

unique and creative

ways. Apple offers youth programs, such as free classes for children learning to code, to capture the imaginations of future con-

sumers. Apple is also turning its retail locations into “town square”. At select venues, the company is building “The

WE ARE RENEWING OUR FOCUS

ON LIBERAL ARTS—HUMANIZING

TECHNOLOGY THROUGH

EXPERIENCES THAT EDUCATE

AND ENTERTAIN VISITORS AND

EMPOWER ENTREPRENEURS.

31

32Netflix


NETFLIX

33

Netflix is one of the world’s leading online streaming video business. Getting subscribers is

easy, but getting 80 percent of your customers loyal is a chal-lenge. How is Netflix able to do it?

According to Recode, a study

by research firm Second Measure revealed that subscribers of other online streaming companies such as HBO Now and Hulu also have Netflix subscriptions, while 80 percent of Netflix users only pay for Netflix. Also included in the study are DirecTV Now, CBS All Access and SlingTV.19 Netflix is one of the pioneers of the industry and changed its landscape forever. This means that, compared to its peers, Netflix had the advan-tage of establishing its brand and relationship with customers even before Hulu or HBO Now were launched. Starting early is a fair advantage any company will get for its innovation and courage.

However, is not only about “being one of the first” players that drives Netflix’s remarkable success. What distinguishes Netflix is that the company pays a lot of atten-tion to knowing its customers better- their needs, personalities and habits.

The wider audience base of Netflix includes both genders in the age-group 17-60 and families with earnings of $30,000 and above. Based on this, Netflix has grouped its target customers into three main segments:

1. People with extremely hectic schedules and barely any time to watch movies in theatres

2. Regular cinemagoers

3. Individuals who want the maximum incentive for their cash

Therefore, if you are keen on creating a customer-obsessed

company similar to Netflix’s business model, master the techniques of customer segmen-tation and walk the path in your customers’ shoes!

Another thing that makes Netflix diff erent from the rest is that the company tailors its services as carefully as possible. Netflix provides its customers with legal access to a pool of motion pictures. The separating variable of the Netflix Business model is that it includes a set of best-customized proposal algo-rithms and a uniform adminis-

tration without the intervention of ads. It is also highly compat-ible with all available devices including desktops, mobiles and TVs. A unique feature of the Netflix business model is

What distinguishes

Netflix is that the

company pays a

lot of attention to

knowing its cus-

tomers better- their

needs, personality

and habits.

Industry: Media/

Entertainment

Latest NPS: 68

19 https://born2invest.com/articles/netfl ix-subscribers-customer-retention/20 http://customerthink.com/how-can-we-build-a-customer-centric-company-like-netfl ix-in-the-digital-world/

34Netflix


that it brings its customers new series in the form of full sea-

sons instead of releasing them one episode at a time. This is an ideal value proposition for any company aiming to emulate Netflix’s business model.20

Another aspect of the Netflix legacy in terms of disruption and customer centricity is they

were not born as an online film streaming company, but rather as a traditional rental com-

pany with a unique pricing and distribution model. Netflix used a flat-rate pricing scheme and distributed their rental DVDs through retail channels instead

of through expensive high-street outlets like Blockbuster. The online distribution just came in handy to further accentuate

their uniqueness.Finally, one of the really

“ground-breaking customer-centric capabilities” of Netflix is that the themes, plots and characters of some of their suc-

cessful self-produced movies are based on data mined from their

viewers’ preferences.

ANOTHER PART NETFLIX’S LEGACY

REGARDING DISRUPTION AND

CUSTOMER CENTRICITY IS THEY

WERE NOT BORN AS AN ONLINE

FILM STREAMING COMPANY, BUT AS

A TRADITIONAL RENTAL COMPANY

WITH A UNIQUE PRICING AND

DISTRIBUTION MODEL.

35

36Samsung


SAMSUNG

37

Samsung Group is a South Korean multinational conglom-

erate headquartered in Sam-

sung Town, Seoul. It comprises numerous affiliated businesses, most of them united under

the Samsung brand, and is the largest South Korean chaebol (family-owned business).

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the group diversi-fied into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the con-

struction and shipbuilding in-

dustries in the mid-1970s; these areas would drive its subsequent growth. Since 1990, Samsung has increasingly globalized its activities and products- in particular, its mobile phones and semiconductors, which have become the company’s most important sources of income.

LinkedIn Today recently an-

nounced that Samsung had ranked among its Top Compa-

nies list across the U.S. The list was cultivated using data from LinkedIn across three main cat-egories: Interest in a company’s jobs, interest in a company’s brand and employees, and em-

ployee retention.Samsung was recognized for

being an international power-house and one of the most prof-itable companies in technology today, with success centered on a culture of fast decision-making and innovative products. Em-

ployees at some of Samsung’s various locations participate in companywide Days of Service, a Volunteer Time Off Program, and an Employee Giving Match Program. Employees are not only passionate about creating a better future for people, but also bringing about positive change in the communities they

live and work in. From corpo-

rate social responsibility initia-

tives to diversity & inclusion programs, Samsung employees focus on giving back and in-

creasing team dynamics.21

“I am both honored and

humbled that Samsung was chosen to be part of Linke-

dIn’s Top Companies list. This recognition is a testament to

the talented, passionate people behind our brand. Our employ-

ees are proud of the many ways in which they contribute to our business, and are equally pas-

sionate about the products we create as they are about giving

back and engaging with commu-

nities across the United States,” said Tim Baxter, President & CEO of Samsung Electronics North America.

“Samsung remains commit-ted to continually increasing employee engagement and satisfaction, which allows us to continuously drive innovation.”

Samsung remains

committed to con-

tinually increasing

employee engage-

ment and satisfac-

tion, which allows

us to continuously

drive innovation.

Industry: Consumer

Brands/Electronics

Latest NPS: 67

21 https://news.samsung.com/us/samsung-recognized-linkedin-top-companies-2018/

38Southwest Airlines


SOUTHWEST

39

Southwest Airlines Co. is a major U.S. airline, the world’s largest low-cost carrier, head-

quartered in Dallas, Texas. The airline was established in 1967 by Herb Kelleher as Air South-

west and then adopted its cur-rent name, Southwest Airlines, in 1971 when it began operating as an intrastate airline wholly within the state of Texas. The airline had more than 53,000 employees as of 2018 and oper-ates more than 4,000 depar-tures a day during peak travel season. As of December 2016, Southwest Airlines had sched-

uled services to 101 destinations in the United States and eight additional countries. Service to both Grand Cayman and Cincin-

nati began June 4, 2017.Southwest Airlines has built

its impressive brand around being different from the rest, of-fering a personable and friendly

service to customers during

even the most difficult times. “In the airline industry, there

are so many things that could go wrong- or so many things that could go well- during a travel experience. When [our employ-

ees] are helping a customer, they look at how they can make things right, and make it a win for the company.” - Rob Hahn, customer-relations business con-

sultant at Southwest Airlines

Southwest Airlines values employees; it initiated the first profit-sharing plan in the U.S. airline industry in 1974 and has been offering it ever since. “In 2000, Southwest offered its employees a record-setting $138M in profit sharing. This tax-deferred compensation rep-

resented an additional 14.1 per-cent of each employee’s annual salary. Southwest Airlines offers no frills, but when it comes to service, it certainly meets customer expectations. They base their model on the motto” If they [employees] are happy, satisfied, dedicated, and ener-

getic, they will take really good care of the customers. When the customers are happy, they come back. And that makes the shareholders happy.” Southwest

We believe that if

we treat our em-

ployees right, they

will treat our cus-

tomers right, and in

turn that results in

increased busi-

ness and profits

that make everyone

happy.

Industry: Travel and

Hospitality/Airlines

Latest NPS: 62

22 http://uk.businessinsider.com/southwest-airlines-puts-employees-first-2015-7?r=US&IR=T

40Southwest Airlines


has very good relations with all its employees. Employees are either members of independent unions or have flexible contracts that allow them to work longer hours. The 44-year-old airline is known for its friendly (and often witty) flight attendants, as well as its top-notch customer service. This stems from its em-

ployees-first mantra, which plays out in a trickle-down effect. 22

In order of importance, Southwest ranks employees first, customers second, and

shareholders third. “We believe that if we treat our employees right, they will treat our cus-

tomers right, and in turn that

results in increased business and profits that make everyone happy,” the airline explains in a blog post about its company culture.

IN THE AIRLINE INDUSTRY, THERE

ARE SO MANY THINGS THAT COULD

GO WRONG — OR SO MANY THINGS

THAT COULD GO WELL — DURING A

TRAVEL EXPERIENCE. WHEN [OUR

EMPLOYEES] ARE HELPING A CUS-

TOMER, THEY LOOK AT HOW THEY

CAN MAKE THINGS RIGHT, AND

MAKE IT A WIN FOR THE COMPANY.

41

EUROFINS

42Eurofins


43

Industry: Laboratory

testing

Latest NPS: 58

Eurofins Scientific is an inter-national life sciences company which provides a unique range of analytical testing services to clients across multiple industries. The Group believes it is the world leader in food, environ-ment and pharmaceutical prod-ucts testing and in agroscience

CRO services.

Considering that the Pharma testing industry has an average

NPS of 28 1 , Eurofins companies has managed to outperform it substantially. Eurofins is one of the global independent market leaders in certain testing and laboratory services for genomics, discovery pharmacology, foren-sics, advanced material sciences and for supporting clinical stud-ies. In addition, Eurofins is one

of the key emerging players in specialty clinical diagnostic test-ing in Europe and the USA.

The book ‘Love Brand’ written

by J. Christian Andersen with a foreword by Kenn Jorgensen, head of sales of Eurofins’ branch in Denmark (Eurofins Product Testing), reveals that the compa-ny’s success has a lot to do with keeping the NPS score high.

‘The services we deliver to our customers are technical consul-tancy and the biochemical testing of products such as building ma-terials, food packaging, cosmet-ics, etc.’- says Kenn Jorgensen.

- ‘With our service as an input, we deliver value for the customer as an output. In our company, we are very focused on that value output – we use it in our daily customer dialogues and in the way we present our company. The value output for our customers is: fast market access, product diff erentiation, reduced costs and minimized risks. In our daily quest for excellence, weuse the Relationwise Customer

44Eurofins


NOW IT IS SOMETHING OUR

EMPLOYEES TALK ABOUT AND

THEY TELL EACH OTHER WHEN

THEY GET A SCORE OF 10.

45

23 https://www.netpromoter.com/compare/

Loyalty (NPS) program as a marker of our service level. It is very important for us that we don’t let ourselves drown in a food of useless KPI metrics that are not related to our value prop-

osition. NPS is the best indicator we can get of how our organiza-

tion is performing in terms of customer service and quality, be-

cause it allows our own custom-

ers to rate us and explain to us how we can improve our service – and not just once per year, but every time we do business. This way we ensure that we live up to our high standards, but also solve any issues there may be.’

‘We ask our customers the magic NPS question exactly seven days after we have invoiced them.’- Kenn continues, - ‘By do-

ing this, we give them the oppor-tunity to score us on the whole process from start to finish, including invoicing and payment. Our customer feedback is distrib-

uted to the sales reps responsible for the customers and to the

people involved in testing and consulting in the labs. Thus, ena-

bling everyone to keep track of the feedback from the customers they’ve worked with. It gives us a boost to receive feedback from people we have worked with over a period of time.’

‘Now it is something our em-

ployees talk about and they tell each other when they get a score of 10’

We have used Net Promoter Score® for five years now, and to begin with people were scepti-cal of it as a tool. A few employ-

ees thought this was a way of bothering our customers with unnecessary emails, and perhaps a few employees did not like the fact that the system was sending out emails on their behalf. Then, as our employees started getting feedback on their work, they be-

gan to acknowledge its value and accept it as a tool in the organi-zation. Now it is something our employees talk about, and they tell each other when they get a score of 10. Since we have been using NPS® for some years now, we have collected quite a lot of data. It is interesting to see the

feedback history from customers that have rated us on a number

of occasions. In many cases we can see that we have improved our performance towards these customers, and today, we also realize that these customers are still here. It is a fact that there is a direct positive relationship between loyalty and retention. Happy customers are loyal, loyal customers stay. In Eurofins Product Testing Denmark we are aware of keeping our customers happy and thereby loyal - it is implemented into our daily rou-

tines, so our quest for improving customer loyalty will never stop.

In our company,

we are very

focused on that

value output – we

use it in our daily

customer dialogues

and in the way we

present our

company.

Your employees may be a customer’s first point of interaction with your brand. That first impression matters: a negative, confusing, or even mediocre first encounter can send a prospect to your competitor for good. When an employee is a true brand advocate, the customer experience improves, leading to repeat purchases, word-of-mouth recommen-dations, and continued online engagement through social channels and apps. 1

https://theblog.adobe.com/importance-employee-engagement-digital-customer-experience/

THE STORY IS TOLD OF A WORKMAN WHO,

WHEN HE FIRST CAME INTO JOHN DEERE’S EM-

PLOY, RENTED A HOUSE BELONGING TO JOHN

DEERE. LATER, HE BOUGHT A HOUSE ELSE-

WHERE ON A VERY SMALL DOWN-PAYMENT.

IT WAS A HEAVY LOAD FOR HIM TO CARRY.

MR. DEERE REALIZED HOW HEAVY; AND HE

WAS DEEPLY INTERESTED. OFTEN IN PASSING

THROUGH THE SHOP, HE WOULD STOP FOR A

CHAT WITH THE MAN; AND ALMOST ALWAYS BE-

FORE LEAVING HE WOULD SAY:

“HAVE YOU GOT THAT HOUSE PAID FOR YET, DICK?”

AND ONCE, AS IF HE COULD NO LONGER

RESTRAIN HIMSELF, HE LEANED OVER

AND WHISPERED:

“DICK, IF YOU DO NEED ANY HELP ON THAT

HOUSE, DON’T FAIL TO LET ME KNOW.” 2

John Deere

50Alm Brand


According to Alm. Brand’s CEO, Rasmus Lynge, the stong

NPS and eNPS results acknowl-edge the hard work that Alm. Brand had put in for several years in order to attract and

retain its customers and make them happy and loyal.

“We are very proud to receive the prize among such a wide range of companies. For more than five years, we have worked strategically to increase employ-

ee satisfaction and customer

loyalty. We believe there is a direct link between happy em-

ployees and loyal customers,” Lynge said.

Alm. Brand Group has both customer satisfaction and job satisfaction as two of its five most important strategic goals.

51

In 2017, Alm. Brand Bank Group received the Relation-

wise “Denmark’s Most Rec-

ommended Company Award” (DMAV) for being top of the list of Denmark’s 100 most recommended registered com-

panies. The award vindicated the Group’s long-term efforts to become the country’s most customer-focused financial company. The award ceremony, which took place at Mogens Dahl Concert Hall in Copenha-

gen, was part of a conference for companies that work with

customer and employee care—measured at NPS (Net Promot-er Score). NPS measures the extent to which customers and employees will recommend the company to others.

Alm. Brand Bank had an NPS of 64 with an employee NPS (eNPS) of 81. These results are indeed remarkable—not only in the finance industry, but in any

industry.

In 2017, Alm. Brand Bank has gained the

title of being Denmark’s most recommended

out of 100 registered companies.

Happy customers

as strategic goalDenmark’s Most Recommended Company

52Hubspot


HUBSPOT

53

Founded in 2006, this multi-million-dollar inbound marketing enterprise has enjoyed exponen-

tial growth over the last decade, fueled by the strength of a thriv-

ing corporate culture focused on self-improvement, transparency and employee wellness.

When Brian Halligan and Dharmesh Shah established their small digital start-up 10 years ago, they made it their priority to create the kind of company that they would love to work for—one that promoted an authentic cul-ture of happiness by empowering its employees to work towards collaborative success.

Today, employee engagement remains a top strategic priority for HubSpot, treated not merely as a “nice-to-have,” but rather as a fundamental driver of business success. Here, fun is a serious matter, with each cultural ini-tiative attached to its own set of associated KPIs and success met-

rics, which enable the company to constantly improve and un-

derstand the impact that internal engagement has on the broader

business bottom line. The results of this intensive approach to employee engagement speak for themselves. With offices across the world, a growth rate of over 50%, and an employee base in excess of 600, HubSpot is mov-

ing extremely fast.

So how can you go about repli-cating this winning formula?

Here are 4 key tips to get you started: 3

EMBRACE CHANGE How does HubSpot keep com-

pany politics to a minimum, promote a culture of adaptabil-ity, and inspire its employees to improve all at the same time?

It’s quite simple: make employ-

ees swap desks every three months. While this might seem unnecessarily quirky or even disruptive, it is, in fact, a very effective way of encouraging company-wide interaction and promoting understanding of the business across the ranks.

INVEST IN PEOPLE HubSpot places great value on advancing and upskilling its em-

ployees, treating every individual as a long-term business invest-ment. All employees receive a $5,000 yearly allowance to put towards certified educational courses, and are afforded access to in-house leadership training, personality development courses, mentoring programs, as well as to conferences offering valuable insights into the marketplace. And whilst it might seem like a risk to invest so significantly in employees when they could just as easily take their newly ac-

quired skills elsewhere, HubSpot believes that an empowered, edu-

cated workforce is not only well worth the investment, but also far less likely to seek out greener pastures.

Industry: Software

Latest NPS: 92

Today, employee

engagement

remains a top

strategic priority

for Hubspot.

3 https://engageme.online/culture-code-four-employee-engagement-lessons-from-hubspot/

54Hubspot


ESTABLISH PURPOSE HubSpot realized very early on that there would be no employ-

ees to create a culture for—or even a business at all—without their customers. That’s why they created their SFTC (Solve for the customer) motto, and tasked employees to do eve-

rything with the customers in mind. The lesson? When people are driven by a clear purpose and an achievable goal, they have a reason to be committed

to working towards success for themselves and, ultimately, your business.

PRESERVE POSITIVE WORK-LIFE BALANCE As the lines between work and play become ever blurrier, Hub-

Spot is going to great lengths to ensure that its. employees live a balanced, healthy life, irrespec-

tive of time or place. The com-

pany’s headquarters are more health spa than office space, home to a wealth of nutritious snacks, exercise classes, stand-

ing desks and even napping sessions. And for employees less inclined to indulge in the joys of HubSpot HQ, working from home is a perfectly acceptable

alternative. Ultimately, HubSpot believes that any employee per-forms best in an environment

in which they feel comfortable and creative, and encourages

all staff members to find their “happy place”—both for their own and the company’s benefit.

Today, employee

engagement

remains a top

strategic priority

for Hubspot.

HUBSPOT PLACES GREAT VALUE ON

ADVANCING AND UPSKILLING ITS

EMPLOYEES, TREATING EACH AND

EVERY INDIVIDUAL AS A LONG-TERM

BUSINESS INVESTMENT.

55

56Sendgrid


SENDGRID

57

Founded in 2009, after

graduating from the TechStars program, SendGrid developed an industry-disrupting, cloud-based email service to solve the challenges of reliably delivering emails on behalf of growing companies. Like many great solutions, SendGrid was born from the frustration of three

engineers whose application emails didn’t get delivered, so they built an app for email de-liverability. Today, SendGrid is responsible for sending billions of emails for some of the best and brightest companies in the world.4

On its corporate blog, the company often posts articles focused on customer engage-

ment. However, SendGrid is also obsessed with another type of engagement–the engagement of each and every employee, af-fectionately called, “Gridders.” 5

The company has been measur-

ing and improving employee en-gagement strategies since 2014.

The last engagement check-inrevealed an 11% point increase in engagement in 6 months, out-performing the firm’s goal andplacing us on par with the top 10% of companies in Culture Amp’s New Tech Benchmark.

The backbone of SendGrid’s corporate culture is defined by their 4Hs: Happy, Hungry, Humble and Honest. Honest stands for transparency and wel-come feedback freely. Staying true to this value, the company have a thorough process ofgathering employee feedback in a consistent way through sur-veys, focus groups, and team en-

gagement reviews. This ensures access to accurate data on en-

gagement scores and employees have an avenue to collectively share feedback with theirleadership team.Once the survey is closed, all employees get full access to the quantitative data, with the ability to view company scores, team scores, and assess vari-

ances over time. This level of transparency arms SendGrid’s employees with the results so that they can drive improve-ments within their teams.

Industry: IT Services

Latest eNPS: 83

4 https://sendgrid.com/about/

5 https://sendgrid.com/blog/employee-engagement-the-4h-way/

The backbone

of SendGrid’s

corporate culture

is defined by their

4Hs: Happy, Hungry,

Humble and Honest.

58Shopify


SHOPIFY

59

Canadian success story,

Shopify, isn’t quite a household name yet, but it likely will be. Over the past ten years, the organization has grown from a start-up created by a couple of friends wanting to sell snow-boarding equipment online to a global operation that hosts more than 370,000 merchants doing over $29 billion in sales. Much in the same way that WordPress made it easy to set up a website, the e-commerce platform ena-bles anyone to set up an online store.

Named 2017’s Number One Best, Place to Work in Canada by Glassdoor 6 , Shopify is well-known for its high employee engagement. Numerous articles have been written about their unique culture. Shopify’s em-ployees are given autonomy to do their own projects and are trusted to make sound decisions and manage their own work-

load. Shopify’s Hackdays are a great example of how work gets accomplished both productively and collaboratively. Every four months, the company sets aside two days where employees can pursue any project of their choice, as long as it’s company related. Many Hackday projects have become core features of

the Shopify product, others have become internal tools to increase productivity or commu-nication, and facilitate company culture. These types of initia-tives help align employees with business objectives and inspire them to be fully involved in their work.7

Another thing Shopify takes very seriously and truly be-lieves in is that workers are more productive when they are healthy. They off er to pay for your gym membership in full and give you a $250 allowance for health-promoting equipment and activities, like a new bike or yoga classes—you can even work at a stand-up desk!We believe that wellness plays a huge part in doing a great job. When we off er breakfasts, lunches and snacks, it’s not just about the perk itself. It’s about making sure people stay healthy.

Daniel Weinand (CCO, Shopify)8

Industry: E-commerce

Latest NPS: 80

We believe that

wellness plays a

huge part in doing

a great job. When

we offer break-

fasts, lunches and

snacks, it’s not

just about the perk

itself. It’s about

making sure people

stay healthy.

6 https://yourworkplace.ca/shopify/

7 https://www.achievers.com/blog/2014/03/voluntary-turnover-unimaginable-shopify/

8 https://www.offi cevibe.com/blog/shopify-company-culture

60Costco


COSTCO

61

Industry: Retail/

Discount Stores

Latest eNPS: 76

Costco is widely-known for paying its employees high wages. In America, a Costco worker earns, on average, about $21 per hour and re-ceives health benefit and ample vacation time. As illogical as it sounds, Costco’s high employee wages are part of its cost-savings plan. With employees earning a decent wage, they are more pro-ductive and less likely to quit.

“No one was going to be able to say we’re making money off the backs of our employees, be-cause we were going to pay the highest wages in all of retail,” said James Sinegal, the founder of Costco. “Seventy cents of every dollar spent by Costco goes to employee wages and the company has a 7 percent turno-ver rate, compared to 60 to 70 percent at other retailers.” 9

The average Costco employee generates nearly triple the rev-enue generated by the average

Wal-Mart and Target employee. This is partly because of Cost-co’s business model. Its Spartan warehouses require far fewer employees to run them than those of the big-box stores. But what keeps customers coming back, and what keeps members renewing their memberships, are the consistently good experi-ences. With highly paid, happy employees, Costco is able to better deliver on this than tra-ditional retailers like Wal-Mart. Employee turnover is a huge cost of business. Between being short-staff ed and the associated costs of finding and training

new employees, it can cost a company between 40 and 150 percent of an employee’s annual

salary to find a replacement. By removing some of the incen-

tives a person would have to quit their job, Costco is able to reduce employee turnover and save money.10

With highly paid,

happy employees,

Costco is able to better

deliver on this than

traditional retailers

like Wal-Mart.

9 http://mitsloan.mit.edu/newsroom/articles/how-costcos-obsession-with-culture-drove-success/

10 https://www.investopedia.com/stock-analysis/040915/3-reasons-costco-great-company-cost.aspx

62Zillow


ZILLOW

63

Zillow, the online real estate site, launched in 2005 with the goal of giving consumers a bet-ter way to buy and sell real es-tate via data access. At the same

time, its co-founders wanted to create a successful, empowering workplace culture, especially one that didn’t burn people out. Today, Zillow Group employs more than 3,000 people and regularly posts quarterly rev-enue results in the hundreds of millions of dollars.

The company’s CEO, Spen-cer Rascoff , is the first to say that he considers HR to be “the most important function of the company.” This, admits Zil-low Group VP of People Dan Spaulding with a laugh, makes his job both easier and harder. While he has his CEO’s com-plete buy-in, he also knows that his department will be held to a higher standard and closer level of scrutiny than most. Still, it’s proved to be a tremendous asset

Industry: Real Estate

Latest eNPS: 65

to have a CEO as engaged as

Rascoff is. In many ways, Zillow Group is a perfect case study of what it looks like when a great HR department and an invested executive team collaborate to ensure that their company

The company’s CEO

Spencer Rascoff

is the first to say

that he considers

HR to be “the most

important function

of the company.”

This, admits Zillow

Group VP of People

Dan Spaulding with

a laugh, makes

his job both easier.

Zillow has an

impressive company

rating of 4.2.

is a great place to work. The results? Zillow has an impres-sive company rating of 4.2, has made Glassdoor’s Best Places to Work list on four diff erent oc-casions, and, most recently, Ras-coff was named in the list of the 100 Highest Rated CEOs for the third time.11 Here are some valuable tips from Zillow’s CEO concerning the importance of employee engagement:12

11 https://www.investopedia.com/articles/investing/070715/costcos-business-model-smarter-you-think.asp

12 https://www.hrdive.com/news/how-zillows-culture-has-proven-to-be-a-key-success-factor/426766/

13 https://www.glassdoor.com/employers/blog/how-zillows-ceo-and-chro-partner-for-off-the-charts-employee-engagement/

64

1

2

3

4

5

Zillow


Set a clear vision. This helps empower employees so they know the company’s mission, direction, and how to solve problems.

Serve your employees, not vice versa. If managers are focused on helping their direct reports succeed instead of always telling them what to do, the entire organization will be set up for long-term success.

Hire people who are better than you, and help them become superstars. Never be afraid of being outshined by someone on your team,

especially a subordinate.

Find ways to keep the company growing and dynamic. Great people want advancement and increased responsibility, but not by cannibalizing the jobs of their co-workers. And never take credit for other people’s work.

Create a company culture that rewards innovation, rather than success.

If you focus on rewarding success, people won’t take risks for fear of failing. Failure is proof that you’re trying. If you’re not failing, you’re not trying hard enough.

65

6

7

8

9

Value efficiency over face time.

If you’re still at your desk at 10 p.m., you probably weren’t very efficient during the day. On a personal note, I turn off my phone on Saturdays and I usually don’t work on vacation. That doesn’t mean I’m not thinking about work—I do that all the time. But I do it quietly, and away from the constant pinging of e-mail.

Offer corporate perks, but in a way that fosters the company’s culture. For example, Zillow invests heavily in employee education and training. Embrace a corporate culture that works hard, plays hard, and celebrates milestones.

Motivate employees to succeed through autonomy, mastery, and purpose.The best way to do this is by staying on message and regularly com-

municating your company’s mission, and tying it back to the work your employees do on a regular basis. This will help them under-stand how their work contributes to the broader goal. Every quarter I remind myself (and my managers) of this by watching Dan Pink’s YouTube video on motivation.

Finally, and most of all, treat employees like grownups. There’s no room at Zillow for needless rules or oversight. Great people need autonomy and inspiration, not a handbook thicker than the dictionary.

66Aflac


AIRFLAC

67

Aflac Inc. is an American insurance company and is the largest provider of supplemental insurance in the United States. The company was founded in 1955 and is based in Colum-

bus, Georgia. In the U.S., Aflac underwrites a wide range of insurance policies, but is per-haps more known for its payroll deduction insurance coverage,

which pays cash benefits when a policyholder has a covered accident or illness. The com-

pany states it “provides financial protection to more than 50 million people worldwide.” 13 In

Aflac’s case, when 40 percent of its staff hails from the millennial and Generation Z age groups, you constantly need new ways to keep them engaged.

But employers can take steps, both large and small, to help retain top talent, says Matthew Owenby, senior vice president,

If you take care of

employees, they

will take care of

the business.Industry: Financial

services/Insurance

Latest eNPS: 62

chief resource officer for Aflac. In his keynote address at the 2016 EBN’s Benefit Forum and Expo in Nashville, Owenby re-

vealed the average tenure at the insurance firm is 18 years, but some employees had been with the company for much longer. “It’s an amazing company and they are staying 20, 30 and 40

years. The call-in center turno-

ver ratio is 8 percent national-ly.” And 7 percent of that is due to spousal relocation, he adds, “this is pretty unusual.”

“If you take care of employ-

ees, they will take care of the business.” The millennial and Gen X workers expect trans-

parency, because, as he puts it, “that is where the relationship starts. As well, they want things outside the company. They want one-on-one mentoring,” he says. “They don’t want automation in what is important.” In response, Owenby says although the firm has invested in employee auto-

mation “we are now walking that back.”

The company also takes a wide approach to engaging across different groups of em-

ployees. For its female employ-

ees, for example, the insurer holds a “women’s tea” where women gather with female exec-

utives to discuss career develop-

ment and the challenges women face in the workplace. Aflac also holds “men’s coffee” meetings where men come together to hear from executives about workplace issues and strategy. “It’s a small simple thing that we get wonderful feedback from our employees,” he says.

And Aflac tries to push en-

gagement further beyond tech-

nologies, as employers provid-

ing a human touch can create a

real connection. For example, he says, on bonus day, Aflac em-

ployees are physically handed checks instead of electronically depositing the money into their accounts and this gesture makes a massive difference.14

13 http://fortune.com/2015/06/04/spencer-rascoff-keeping-your-best-employees//

14 https://www.aflac.com/about-aflac/default.aspx

68Hasbro


HASBRO

managers meet with their teams quarterly to provide updates about business and discuss

departmental achievements and goals.

Hasbro’s long-term objective for employee engagement is to improve communication and global connections across the organization, and to promote employees’ understanding of the corporate strategy and how they contribute to it. Recogniz-

69

Open communication at every level of Hasbro promotes greater employee satisfaction and more eff ective manage-ment. The company believes that success requires a culture where information is shared quickly and eff ectively, feedback is honestly given, and employees feel confident to talk freely with colleagues and managers. The company’s focus on two-way communication starts right from

the top. For example, monthly “Lunches with Leadership” give employees around the world similar opportunities to discuss all aspects of the business with Hasbro’s most senior execu-tives. Departmental meetings are held regularly, and senior

Industry: Toy

manufacturing

Latest eNPS: 61

ing that hard work and innova-tion keeps Hasbro ahead of the competition, the firm recog-nizes and rewards its employees for their contributions to Has-bro’s overall success. Every em-ployee’s compensation package includes a pay-for-performance element, including merit-based increases and variable bonus programs linked to the perform-ance of the company, region, business or individual. U.S. employees can view their total rewards and benefits on an on-line portal. And, throughout the year, the company celebrates individual and corporate success

15 https://www.benefi tnews.com/news/how-afl ac-tackles-employee-turnover-through-engagement 16 https://csr.hasbro.com/employees/rewarding-employees

17 https://csr.hasbro.com/employees/engaging-our-employees

The company believes

that success requires

a culture where in-

formation is shared

quickly and

effectively, feedback

is honestly given, and

employees feel confi-

dent to talk freely with

colleagues and

managers.

Hasbro’s long-term

objective for

employee engage-

ment is to improve

communication

and global connec-

tions across the

organization

70Hasbro


through events and awards. 15

As a company dedicated to enriching play time and bring-

ing families closer together through its products, Hasbro appreciates the importance of helping employees maintain a good work/life balance. The company offers competitive paid time off policies including, in the United States, up to three weeks of vacation annually, beginning in the first calendar year after an employee is hired, an additional week off between Christmas and New Year, and a shorter working day on Fridays in many locations. The com-

pany also provide paid parental leave in all U.S. and European locations for parents taking care of a newborn or newly adopted child. A variety of flexible work arrangements are also on offer, subject to managers’ discretion.

Individual arrangements may include flexible start and finish times, changes or reductions

in work hours, and working re-

motely. The guidelines help pro-

vide flexibility for unforeseen events, such as bad weather or a sick family member, but also for more formal arrangement to meet individuals’ needs and help promote better work-life balance.16

Hasbro appreciates

the importance of

helping employees

maintain a good

work/life balance.

HASBRO’S LONG-TERM OBJECTIVE

FOR EMPLOYEE ENGAGEMENT IS TO

IMPROVE COMMUNICATION AND

GLOBAL CONNECTIONS

ACROSS THE ORGANIZATION, AND

TO PROMOTE EMPLOYEES’ UNDER-

STANDING OF OUR CORPORATE

STRATEGY AND HOW THEY

CONTRIBUTE TO IT.

71

72Netflix


NETFLIX

73

Netflix had long been famous for its “freedom & responsibil-ity” slide deck as a way to com-municate its corporate values to potential and existing employees. However, the company’s views concerning employee engagement and development have nothing to do with yoga classes, free meals or fancy offi ce furniture. Netflix’s offi ce may be close to other tech giants like Google, Facebook, and Yahoo as well as countless other start-ups, but the company couldn’t be more diff erent in the way it thinks about perks and campus culture. There are no giant slides at Netflix’s offi ce, no spontaneous ultimate Frisbee tournaments and no Burning Man

tributes.

“Our version of the great work-place is not comprised of sushi lunches, great gyms, big offi ces, or frequent parties. Our version of the great workplace is a dream

team in pursuit of ambitious com-mon goals, for which we spend heavily.” – Netflix corporate culture document.

Netflix is fond of saying it hires only “fully formed adults,” and the company treats them as such—bestowing on them great amounts of freedom so they can take risks and innovate without being bogged down by process. The flip side of all this power, however, is that people are expected to work at a super-high level or be quickly shown the door (with a generous severance package).

However, tracking vacation days, getting expenses approved and sitting through yearly per-formance reviews are things

salaried employees at Netflix don’t really have to worry about. They have the right to get unlim-ited vacation. They can expense without getting approval from their managers, as long as they’re acting in Netflix’s best interest. In short—Netflix, employees have the total freedom to act as they see fit if it’s in the interest of the company. And employees who are “a good fit” for Netflix simply love this!

“If you trust and empower people and give them a chance to rise to the higher expectations, the vast majority of people are able to do it,” says Sam Stern, a senior customer experience analyst at Forrester Research.

As mentioned before, another

famous tidbit about Netflix’s corporate culture is that the company doesn’t limit vacation time, instead leaving it to each employee to take as much time as they need, but also asking them to put in extra hours when neces-sary. “Frankly, we intermix work and personal time quite a bit, doing email at odd hours, taking off weekday afternoons for kids’ games, etc.” 17

But still—Netflix is not all that boring the whole time! For exam-ple, how many CEOs would wear an ugly Christmas sweater on earnings calls?

Our version of the

great workplace

is a dream team

in pursuit of ambi-

tious common

goals, for which we

spend heavily.

Industry: Media/

Services

Latest eNPS: 61

18 https://variety.com/2017/digital/news/netfl ix-company-culture-document-1202474529/

74LG


LG

75

LG Corporation, formerly Lucky-GoldStar, is a South Ko-rean multinational conglomerate corporation. It is the fourth-largest chaebol (family-run company) in South Korea and is headquartered in Seoul. LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Dis-play, LG Uplus , LG Innotek and LG Chem in over 80 countries. 18

LGE is constantly striving to create a corporate culture based on communication. Known as “Communication for Solving Problems,” the LG process allows employees to communicate freely, one-to-one, with top managers and leaders in order to address potential problems in a timely manner. And this communication

involves more than simply report-ing the problem. Participants are encouraged to views the problem from the owner’s perspective

before suggesting a solution to the problem.

Similarly, with the annual “LG Way Survey”, the company assesses its eff ectiveness in creat-ing a positive work environment in which employees feel their creativity and autonomy is being

promoted, and then implements improvements based on the results. Employees are solicited to provide input on the work envi-ronment and leadership style: for example, “I am given the discre-tion to take the initiative based on my ideas and judgment when working towards meeting the company’s goals,” “My boss al-lows and encourages me to make moves that have never been tried

before,” etc. Another employee initiative is

the so-called “VOE” or “Voice of Employees.” This process identi-fies employee perceptions of the company’s major policies and reviews the policies based on the collected perceptions. So-called Change Agents (CA) and Junior Board (JB) played important roles in activating this employee partici-pation culture. CAs are the com-pany’s members that lead change in LG’s overseas organizations. JB is a medium for employees in Korea to communicate their

opinions to top management and perform various roles connected with employee rights. VOE is con-sidered first in all improvement plans and has become a vital part of LGE’s corporate culture.

Employees

are solicited to

provide inputs

describing a work

environment and

leadership style.

I am given the dis-

cretion to take the

initiative based on

my ideas and judg-

ment when working

towards meeting

the company’s goals.

Industry: Technology/

Electronics

Latest eNPS: 60

19 https://en.wikipedia.org/wiki/LG_Corporation

76LG


LG also operates various programs to ensure its employees’ work-life balance. The company believes that employee happiness, both personal and professional, leads to strong business perform-

ance and that work-life balance is an integral part of making employees happy. For this reason, LG Electronics has a wide range of initiatives to help employees achieve work-life balance. For example, the company provides stress management and psycho-

logical counseling services so that employees can focus on their working life. It operates psycho-

logical counseling programs in all

corporate branches throughout Korea, and provides a mobile counseling service for small regional branches. In particular, employees’ family members can get help with their problems from the counseling service available at the company’s R&D centers.19

THE COMPANY BELIEVES THAT

THE HAPPINESS OF ITS EMPLOYEES,

BOTH PERSONALLY AND

PROFESSIONALLY, LEADS TO

STRONGBUSINESS PERFORMANCE

AND THAT WORK-LIFE BALANCE IS

AN INTEGRAL PART OF MAKING

EMPLOYEES HAPPY.

77

78Intuit


INTUIT

79

Intuit may not star in the

Fortune 500 list like GE and Facebook, but it’s a force to be reckoned with in the tech in-dustry. The firm’s cloud-based accounting and tax preparation services generated $4.7 billion in revenue last year from more than 1.8 million subscribers. Moreover, it consistently ranks among the best workplaces in the US thanks to a strong company culture.

“Intuit believes in the power of the individual. The power to do more. To make more. To be more.” 20

This statement applies not only to Intuit’s vast customer base, but also to its employees. One of the core pillars of Intuit’s employee engagement strategy is Spotlight, an awards program that has been the subject of a Stanford case study. The program is designed to foster healthy competition in the offi ce and maintain employee

morale. To that end, Intuit makes a point of routinely recognizing good work. Personnel receive perks for strong sales perform-ance, for referring a hire, propos-ing feature ideas and for a variety

of other tasks that benefit the organization.21

Moreover, Intuit mixes up the rewards to keep the incentive strong. One type of achievement may be recognized with a bo-nus, while another could get the recipient extra time to work on a project. Intuit has also set up a system that makes it easy for em-ployees to commend one another when they exceed expectations in everyday tasks.

Even on a smaller scale, a consistent awards program with

a healthy lineup of incentives can make a big impact on employee engagement. Workers who do not feel adequately recognized are twice as likely to quit, ac-cording to Gallup, which means there’s much to be gained on the retention front by acknowledging productivity.

Intuit believes in

the power of the

individual. The

power to do more.

To make more.

To be more.

Industry: Software/

Banking

Latest eNPS: 59

20 https://medium.com/glint-od-science/customer-spotlight-how-intuit-worked-up-a-company-wide-appetite-for-hr-data-part-1-of-2-8eaac314992

21 https://www.goco.io/blog/hr-worlds-innovative-companies/

Find out more about us at www.relationwise.com

global nps & enps benchmark report 2018 - cxo€¦ · the process of owning a tesla far better...

Documents